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The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets Total assets $ 66,000 273,000 $339,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: $ 37,000 165,000 44,000 93,000 $339,000 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $112,000 for $66.000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $60,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.

The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets Total assets $ 66,000 273,000 $339,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: $ 37,000 165,000 44,000 93,000 $339,000 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $112,000 for $66.000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $60,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.

SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Require parts a, b, & c

The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets Total assets $ 66,000 273,000 $339,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $112,000 for $66.000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $60,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a predistribution plan for this partnership. Frick, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances 0 0 0 Wilson, Clarke, Capital Capital 0 0 0 < Required A 0 $ 37,000 165,000 44,000 93,000 $339,000 0 0 Required B >
Transcribed Image Text:The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets Total assets $ 66,000 273,000 $339,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $112,000 for $66.000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $60,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a predistribution plan for this partnership. Frick, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances 0 0 0 Wilson, Clarke, Capital Capital 0 0 0 < Required A 0 $ 37,000 165,000 44,000 93,000 $339,000 0 0 Required B >
Complete this question by entering your answers in the tabs below. Required A Required B Required C Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not round intermediate calculations.) Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Final distribution based on ending capital account balances Ending balance Cash $ 66,000 $ 66,000 Wilson, Capital (20%) Clarke, Capital (20%) $ 273,000 $ 37,000 $ 165,000 $ 44,000 $ 93,000 Noncash Assets Liabilities Frick, Capital (60%) $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ < Required A $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 Required C > $ 165,000 $ 44,000 165,000 165,000 165,000 165,000 $ 93,000 165,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000 165,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Required C Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not round intermediate calculations.) Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Final distribution based on ending capital account balances Ending balance Cash $ 66,000 $ 66,000 Wilson, Capital (20%) Clarke, Capital (20%) $ 273,000 $ 37,000 $ 165,000 $ 44,000 $ 93,000 Noncash Assets Liabilities Frick, Capital (60%) $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ < Required A $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 $ $ 66,000 $ 273,000 $ 37,000 Required C > $ 165,000 $ 44,000 165,000 165,000 165,000 165,000 $ 93,000 165,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000 165,000 $ 44,000 $ 93,000 $ 44,000 $ 93,000
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